Once again as financial markets collapse they reveal the truth that all capitalism is basically a ponzi scheme.
THE MADOFF AFFAIR: $50-BILLION PONZI SCHEME ALLEGED
Madoff put under house arrest as celebrities, charities, banks disclose exposure
It befits the close of one of the most bizarre years in international finance to look at the collapse of one of its most extraordinary villains, Bernard Madoff, a former chairman of the Nasdaq sharemarket and a Wall Street titan.The crisis in the world financial system has its roots in excessive greed, stupidity, poor regulation and disappearing capital, and the story of Madoff's downfall and a $US50 billion sting bears many of the same hallmarks.
When Enron and World Com collapsed it was revealed that they were in cahoots with their accounting firms, who not only checked their books, but helped them cook those books in order to avoid taxes and to make it appear they were more profitable than they really were. And at the same time the SEC was not doing its job in fact as this recent scandal reveals they acted not as regulators but enablers of Mr. Madoffs criminal scheme.
SEC investigators discovered Madoff violations in 2006: WSJ
We should be surprised by this I think not, after all capitalism began as a joint effort between merchant bankers, pirates and private mercenaries. Why should it be any different four hundred years later.
Bernard Madoff 's $50 billion Ponzi scheme was so breathtaking that investors have been left speechless. But the alleged crook -- universally described as "charming" -- would not have succeeded were it not for the unbelievable gullibility of supposedly sophisticated investors.Madoff knew that just because people were rich it did not not make them smart -- that was the source of his success. All you have to do is talk about an investment philosophy that is vague but sounds really authoritative. Give people nonsensical statements that they glance at quickly. Make sure that the statements indicate steady returns of 10% to 13% a year. Many CFOs, CIOs and portfolio managers were amazed that Madoff produced such steady returns for so long. They were mathematically impossible. Barron's raised questions in 2001 about whether Madoff was "front-running" trades, an allegation he denied. Still, Madoff's rich buddies stood by his side.Maddoff somehow managed to convince a slew of banks and hedge funds, billionaires such as Mets owner Fred Wilpon, Yeshiva University along with charities associated with Steven Spielberg and Nobel Laureate Elie Wiesel that the laws of investing do not apply to them. The odds of anyone getting double-digit returns year after year are laughably small. They, of course, understood that, but figured why fix something that ain't broke. By turning a blind eye to fiscal reality, these victims showed almost as much greed as Madoff.
Madoffs clients are a who's who of the very financial institutions that lined up at the trough to be bailed out, and who claimed if they failed capitalism would collapse. In fact the whole collapse of America's financial market reveals that it was all a ponzi scheme.
After all, Madoff’s scheme -- at least in spirit, if not in its nefarious intent -- wasn’t much different than the business models at some of the nation’s largest failed financial institutions.
Back in May, four months before it collapsed, American International Group Inc. increased its dividend at the same time it unveiled plans to raise $12.5 billion in capital. Later, when its cash ran out, AIG got a government bailout, the size of which has expanded to about $150 billion.
Whether you call that a Ponzi scheme or something less sinister, AIG was paying old investors with money raised from new investors. The same could be said of many banks that blew through billions of dollars in freshly raised capital the past couple of years, continuing to pay large dividends even as their balance sheets quietly imploded. So why have other Ponzi-esque operators emerged scot-free (so far) with taxpayer bailouts, while Madoff gets pinched?
And one of these financial institutions caught up in the Madoff affair is UBS the Swiss banking company recently indited for using its banks in Canada to hide U.S. billionares fortunes offshore in its banks acounts top avoid taxes, which is itself illegal, but just another case of business as usual until we are caught.
Howewver while Mr. Madoff's actions have been declared illegal, another capitalist billionaire Sam Zell is able to do the same thing legally!!! And there really is no difference between them.
Sam Zell, Tribune's billionaire CEO, but rather the thousands of Tribune employees whose stock ownership plan was jerry-rigged to fund the company's buyout last year. Mr. Zell was the architect of the deal, but put up only around $300-million of his own money as a kind of option to later buy financial control of the company for as little as $500-million more. Under the mind-boggling structure Mr. Zell and his advisers came up with, the Tribune ESOP owns 100 per cent of the shares. What happens to them? The Chicago Tribune said it most starkly, quoting an employee conference call with Mr. Zell: “The ESOP, which Mr. Zell said a year ago offered employee “owners” the chance to share richly in Tribune Co.'s eventual success, could be wiped out, leaving thousands of Tribune Co. employees with no company retirement plan besides what they elect to save in a 401(k).”
Tribune’s Chapter 11 filing likely means a court delay for six current and ex-L.A. Times employees who are trying to oust billionaire owner Sam Zell from the board of directors. But in the meantime, they can point to Zell’s bankruptcy-protection filing as Exhibit A in the court of public opinion. “The sort of critique we made in the lawsuit has been borne out,” says plaintiff Henry Weinstein, the Times’ former legal affairs writer and now a professor at UCI’s new law school. In addition to the Times, Tribune’s assets include KTLA-TV, the Chicago Tribune and the Chicago Cubs. In late 2007 Zell took the company private by putting up $315 million and borrowing $8 billion. The class-action suit, filed in September, accused Zell of orchestrating a scam and burying the company in debt. Zell called the suit “a distraction that’s unnecessary.” Says Weinstein: “We are certainly going to try to be heard in the bankruptcy court. There are all sorts of employee interests” ...
The following is an official statement from Teamsters General President James P. Hoffa.
"When billionaire Sam Zell took Tribune private in an overleveraged, doomed deal that swiftly brought down the 161-year-old media giant, the risks involved were placed squarely on the shoulders of Tribune workers. Now, as Tribune's creditors head to bankruptcy court for payback, these workers should go directly to the front of the line.
By transferring 100 percent ownership of the company and some $13 billion of debt to an S-Corp Employee Stock Ownership Plan (ESOP) in the buyout, Zell insulated himself from tax responsibilities and mortgaged the future retirement savings of Tribune employees. Despite owning 100 percent of the company, employees were given no voice in the governance of the company or in the plan itself. They've had no say in the terms of their own debt obligations or decisions related to how best to service that debt.
Tribune contributions to employee retirement savings for employee-owners changed from a defined benefit plan to a defined contribution plan structured as the ESOP. Employees participating in the ESOP can't diversify their holdings until they reach age 55.
The first of the company's contributions to the ESOP was expected to happen in the first quarter, but now -- with the Tribune mired in Chapter 11 bankruptcy -- it's unclear whether that will happen or whether those shares will have any value.
Not everyone lost on the deal. Tribune executives made millions, including CEO Dennis FitzSimons, who engineered the deal with Zell and raked in $17.7 million in severance and other payments and cashed in his stock for $23.8 million. Shareholders traded in stock rated deep into junk territory for cash representing a 21 percent premium over the stock price just before the transaction. The banks that lent Tribune the money shared some $47 million in fees.
Citigroup and Merrill Lynch who advised Tribune on the deal received $35.8 million and $37 million respectively. And billionaire Zell, who put up only $315 million in the deal, is expected to stand ahead of employees in the creditors' line at bankruptcy court.
Unfortunately Mr. Zell will not be sharing a cell with Mr.Madoff nor with another Chicago paper baron; Lord Black. Though he should.
SEE:
Super Bubble Burst
Hedge Funds, Junk Bonds, Ponzi Schemes
Find blog posts, photos, events and more off-site about:
Conrad Black, crime, fraud, racketeering, Sam Zell, Chicago Tribue, Barry Madoff, Chicago, Lord Black, newspapers,
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Thursday, December 18, 2008
Danny Boy Nationalizes AbitibiBowater
Newfoundland seizes assets of AbitibiBowater
Bravo Danny Williams, now one more step to take to really be a socialist, put the AbitibiBowater Inc., mill and hydro plant under worker/community control. Of course the usual media whiners are comparing Danny to Hugo Chavez, however when capital abandons its community responsibilities then the state has the right to take over the real capital (production facilities) in order to insure they are not sold off or removed. Danny Williams has nationalized not only the money losing side of the operation but the profitable hydro plant, that is what really hurts Abitibibowater. However lets understand that the Newfoundland's nationalization of the AbitibiBowater Inc., facilities does not mean they will actually end up under public ownership of the community and workers. In fact the state could sell them off to the highest bidder. The union and community needs to publicly lobby for worker control and public ownership.
Bravo Danny Williams, now one more step to take to really be a socialist, put the AbitibiBowater Inc., mill and hydro plant under worker/community control. Of course the usual media whiners are comparing Danny to Hugo Chavez, however when capital abandons its community responsibilities then the state has the right to take over the real capital (production facilities) in order to insure they are not sold off or removed. Danny Williams has nationalized not only the money losing side of the operation but the profitable hydro plant, that is what really hurts Abitibibowater. However lets understand that the Newfoundland's nationalization of the AbitibiBowater Inc., facilities does not mean they will actually end up under public ownership of the community and workers. In fact the state could sell them off to the highest bidder. The union and community needs to publicly lobby for worker control and public ownership.
Revisiting his campaign theme of "no more giveaways," Mr. Williams wished the company well, but said it will leave the province with the same resource rights it had on arrival: none.
"The legislature in Newfoundland and Labrador is paramount in this jurisdiction and we stand by that," he told the CBC.
"If Abitibi wants to launch any legal challenge, then that's up to them; we have no control over that. I'm sure, though, they will get legal opinions that indicate that our legislature has full authority to do what it's done."
The legislation gives the provincial cabinet the authority to set compensation for the company's physical assets. Mr. Williams said his government will try to hammer out a deal with AbitibiBowater, but will set its own figure if an agreement cannot be reached.
He also said that the "honourable thing" would have been for the company to have handed over its assets "free of charge."
Robert Leckey, an expert in constitutional law at McGill University in Montreal, noted that provinces have broad authority to expropriate.
"It sounds perfectly permissible to me," he said. "The legislature has the power to state in the legislation that it can offer no compensation."
That being said cudo's to Danny Boy for doing the right thing.
There is no indication that the government's plan will save any of the jobs that will be lost in Grand Falls-Windsor since AbitibiBowater announced earlier this month it was closing the mill after workers rejected concessions.
Mr. Williams said he is looking for a new owner, but acknowledged the lumber industry is currently enduring tough times.
Gary Healey, the national representative representing unionized workers at the mill, applauded the government's move.
"It certainly sends a message to any corporation that wants to operate in Newfoundland that they must behave and act in a responsible way and develop the resources for the people who actually live in the province," Mr. Healey said.
"The days of acting like carpet-baggers are over."
Now lets do that to other industries demanding bail outs. Like Chrysler, which is threatening to shut down productive plants in Ontario, as well as in the U.S. and Mexico. Over to you Dalton McGuinty.
SEE:
Danny Millions State Capitalist
Chrysler Black Mail
tags
Premier, Danny Williams, Newfoundland, AbitibiBowater,
Wednesday, December 17, 2008
Socialism or Barbarism
It is obvious to all of us that capitalism is once again in crisis, a crisis it created but failed to predict. While it was historically predictable and inevitable, it is the nature of capitalism.
And so the only solution is not band aid bail outs but for us, the proletriat to take over capitalism, which cannot exist without our labour, and which has produced an artifical boom of credit which we as proletarians were sold as consumers. Crediting the working class and the those who had no equity so that capital could continue to make record profits is what had kept America and its NAFTA allies going.
The public secret that is known to all of us, including capital, the state and the unions is that we the workers create real capital, production of goods which need to be consumed. All other capital, investments, the stock market, bonds, hedge funds, private equity, is all surplus value created by workers producing real value. The current crisis of capitalism is that finance, fictious capital, that produces no real value that is real objects we can consume, is now dominating the productive market. We the workers are not consuming the value we create.
And we now spiral into the real historic crisis of capitalism which is over production. And the solution to this crisis historically has been either war or revolution.
Unfortunately for the Trade Unions and the Social Democratic left the latter is not on their agenda. But for capital the former is a solution they are willing to use, by enabling counter revolutionary nationalism; fascism.
We live in interesting times once again. The phoney stability of consumer capitalism has its facade ripped away daily as its chief clowns; the politicians try to assure us all is fine with capitalism and there is no alternative, when they know full well the alternative is the historic reality of socialism or barbarism.
In 1848 Karl Marx and Frederick Engels argued in the Communist Manifestothat the historic fight between the oppressor and oppressed ended 'either ina revolutionary reconstitution of society at large, or in the common ruin ofthe contending classes'. Engels said that 'bourgeois society stands at thecrossroads, either transition to socialism or regression into barbarism'.Later Rosa Luxemburg, a Polish revolutionary working in Germany at the endof the First World War, raised the slogan: 'Socialism or Barbarism'!
The fact is that the elephant in the room is another form of barbarism, that which could result from the climate crisis created by mass industrialization. Instead of looking at the decline in production as an opportunity to create an ecological socialist society, the same old cries of more work, more jobs, more consumption is echoed by the capitalists, the unions and the social democrats. It's not that 'There Is No Alternative', rather the alternative is as clear as the nose on their faces, they just don't want to face it. Their political solutions are as bankrupt as the system they are trying to bail out.
Drought means workers hungry in U.S. produce capital
By TRACIE CONE Associated Press Writer
Posted: Dec. 12, 2008
MENDOTA, Calif. — Idled farm workers are searching for food in the nation's most prolific agricultural region, where a double blow of drought and a court-ordered cutback of water supplies has caused hundreds of millions of dollars in losses.
This bedraggled town is struggling with an unemployment rate that city officials say is 40 percent and rising. This month, 600 farm families depleted the cupboards of the local food bank, which turned away families - more than 100 of them - for the first time.
"We're supposed to supply the world," said Mendota Mayor Robert Silva, "and people are starving."
The state's most dire water shortage in three decades is expected to erase more than 55,000 jobs across the fertile San Joaquin Valley by summer and drive up food prices across the nation, university economists predict.
"People being thrown out of work are the ones who can least afford it," said Richard Howitt, a professor of agriculture economics at the University of California-Davis, who estimates that $1.6 billion in agriculture-related wages across the valley will be lost in the coming months because of dwindling water.
SEE:
There Is An Alternative To Capitalism
Find blog posts, photos, events and more off-site about:Marx, protectionism, socialiism, libertarian socialism, Engels, U.S. economy, Great Depression, market crash, free trade, capitalism, recession, communism,capitalist crisis, bourgeoisie,
And so the only solution is not band aid bail outs but for us, the proletriat to take over capitalism, which cannot exist without our labour, and which has produced an artifical boom of credit which we as proletarians were sold as consumers. Crediting the working class and the those who had no equity so that capital could continue to make record profits is what had kept America and its NAFTA allies going.
The public secret that is known to all of us, including capital, the state and the unions is that we the workers create real capital, production of goods which need to be consumed. All other capital, investments, the stock market, bonds, hedge funds, private equity, is all surplus value created by workers producing real value. The current crisis of capitalism is that finance, fictious capital, that produces no real value that is real objects we can consume, is now dominating the productive market. We the workers are not consuming the value we create.
And we now spiral into the real historic crisis of capitalism which is over production. And the solution to this crisis historically has been either war or revolution.
Unfortunately for the Trade Unions and the Social Democratic left the latter is not on their agenda. But for capital the former is a solution they are willing to use, by enabling counter revolutionary nationalism; fascism.
We live in interesting times once again. The phoney stability of consumer capitalism has its facade ripped away daily as its chief clowns; the politicians try to assure us all is fine with capitalism and there is no alternative, when they know full well the alternative is the historic reality of socialism or barbarism.
In 1848 Karl Marx and Frederick Engels argued in the Communist Manifestothat the historic fight between the oppressor and oppressed ended 'either ina revolutionary reconstitution of society at large, or in the common ruin ofthe contending classes'. Engels said that 'bourgeois society stands at thecrossroads, either transition to socialism or regression into barbarism'.Later Rosa Luxemburg, a Polish revolutionary working in Germany at the endof the First World War, raised the slogan: 'Socialism or Barbarism'!
The fact is that the elephant in the room is another form of barbarism, that which could result from the climate crisis created by mass industrialization. Instead of looking at the decline in production as an opportunity to create an ecological socialist society, the same old cries of more work, more jobs, more consumption is echoed by the capitalists, the unions and the social democrats. It's not that 'There Is No Alternative', rather the alternative is as clear as the nose on their faces, they just don't want to face it. Their political solutions are as bankrupt as the system they are trying to bail out.
Drought means workers hungry in U.S. produce capital
By TRACIE CONE Associated Press Writer
Posted: Dec. 12, 2008
MENDOTA, Calif. — Idled farm workers are searching for food in the nation's most prolific agricultural region, where a double blow of drought and a court-ordered cutback of water supplies has caused hundreds of millions of dollars in losses.
This bedraggled town is struggling with an unemployment rate that city officials say is 40 percent and rising. This month, 600 farm families depleted the cupboards of the local food bank, which turned away families - more than 100 of them - for the first time.
"We're supposed to supply the world," said Mendota Mayor Robert Silva, "and people are starving."
The state's most dire water shortage in three decades is expected to erase more than 55,000 jobs across the fertile San Joaquin Valley by summer and drive up food prices across the nation, university economists predict.
"People being thrown out of work are the ones who can least afford it," said Richard Howitt, a professor of agriculture economics at the University of California-Davis, who estimates that $1.6 billion in agriculture-related wages across the valley will be lost in the coming months because of dwindling water.
SEE:
There Is An Alternative To Capitalism
Find blog posts, photos, events and more off-site about:Marx, protectionism, socialiism, libertarian socialism, Engels, U.S. economy, Great Depression, market crash, free trade, capitalism, recession, communism,capitalist crisis, bourgeoisie,
Mike Fluffy
CTV's paunchy pundit Mike Duffy has become a political puffball with his interviews with Harpocrite ministers. He throws them softballs and lets them anwser with their spin message with no challenge offered. As the ad's say' ya gotta talk to Duff' cause he will let you spin. It was particularly bad during the political crisis of last week, when he sided with the government against the coalition calling them the three stooges, and mimicking the party line of the PMO.
Of course he isn't the only one, Greg Weston of the Sun has called the coalition members that and further yesterday on Duff's show he called the coalition an attempted coup. Which of course it was anything but. It was perfectly parlimentary process, however the Harpocrite spin message has sunk deep into the mainstream media, especially amongst the pundits who repeat the talking points in their articles and commentaries.
Mike Duffy now spins the party line for the public, while chastising his guests if they raise issues he doesn't approve of. Case in point the NDP strategist dared to point out that the Bank of Canada was predicting dire times and Mike chimed in that in fact foreclosures in Canada were very small. A point made earlier by an economist he interviewed. However what he missed is that bankruptcies are on the rise again.
At other times Mike has fawned over the Calgary School lads over the military operations in Afghanistan, without so much as a critical comment.
At least Don Newman over at CBC Politics, Duffy's comptetition in the same time slot, asks hard questions of his guests, Mike spoon feeds them an opening to give the party line.
SEE
Sexism Duffy Style
Mike Duffy Makeover
CTV/G&M Showing Conservative Bias
Duffy Slaps Out Duffy
Ezra's Petard
Find blog posts, photos, events and more off-site about:Media, Canada, CTV, Mike Duffy, Duff, BellGlobalCTV, , TV, politics,
Of course he isn't the only one, Greg Weston of the Sun has called the coalition members that and further yesterday on Duff's show he called the coalition an attempted coup. Which of course it was anything but. It was perfectly parlimentary process, however the Harpocrite spin message has sunk deep into the mainstream media, especially amongst the pundits who repeat the talking points in their articles and commentaries.
Mike Duffy now spins the party line for the public, while chastising his guests if they raise issues he doesn't approve of. Case in point the NDP strategist dared to point out that the Bank of Canada was predicting dire times and Mike chimed in that in fact foreclosures in Canada were very small. A point made earlier by an economist he interviewed. However what he missed is that bankruptcies are on the rise again.
At other times Mike has fawned over the Calgary School lads over the military operations in Afghanistan, without so much as a critical comment.
At least Don Newman over at CBC Politics, Duffy's comptetition in the same time slot, asks hard questions of his guests, Mike spoon feeds them an opening to give the party line.
SEE
Sexism Duffy Style
Mike Duffy Makeover
CTV/G&M Showing Conservative Bias
Duffy Slaps Out Duffy
Ezra's Petard
Find blog posts, photos, events and more off-site about:Media, Canada, CTV, Mike Duffy, Duff, BellGlobalCTV, , TV, politics,
Right Wing Echo Chamber
Last week the right wing thunk tank and taxpayer funded lobby group the Fraser Institute discovered corporate welfare. And sure enough their political lobby arm the Canadian Taxpayers Federation echos their masters voice;
Mr. Gaudet said the collapse of the auto industry remains inevitable despite this latest surge of public cash. "There is no evidence in the past that corporate welfare works," he said. This bailout will only lead other financially struggling companies and industries in this tough economic time to also expect a government shell-out, Mr. Gaudet warned. "The government can't bail them all out," he said. "It's hard to justify to a laid-off Nortel worker why his or her tax dollars should go to support artificially inflated salaries in the auto industry."
Which Nortel workers are those? The ones left working in China?
My goodness but this is funny to hear the CTF speak on behalf of workers. This political lobby of business types, who are not taxpayers, whose association does not speak for workers but a small self interested right wing business lobby, whose association is not democratic and has no elected officials simply employed self appointed spokesmen.
But as the article goes on to point out actually the last time Chrysler was bailed out they paid back their debt. However it seems ominous that this apologist for the capitalist class is telling us the Big 3 are doomed. Of course as usual they blame workers salaries and production costs for being uncompetitive. However as usual they never let the facts get in the way of their rhetoric. In Canada the wages and benefits paid to Toyota workers who are not unionized are competitive with CAW wages and benefits. Not less but competitive. Yet no one is telling Toyota workers to take a wage cut.
And like the Big 3 Toyota is cutting back on production as well. The crisis of overproduction has hit automakers around the globe, thanks of course to globalization.
Mr. Gaudet said the collapse of the auto industry remains inevitable despite this latest surge of public cash. "There is no evidence in the past that corporate welfare works," he said. This bailout will only lead other financially struggling companies and industries in this tough economic time to also expect a government shell-out, Mr. Gaudet warned. "The government can't bail them all out," he said. "It's hard to justify to a laid-off Nortel worker why his or her tax dollars should go to support artificially inflated salaries in the auto industry."
Which Nortel workers are those? The ones left working in China?
My goodness but this is funny to hear the CTF speak on behalf of workers. This political lobby of business types, who are not taxpayers, whose association does not speak for workers but a small self interested right wing business lobby, whose association is not democratic and has no elected officials simply employed self appointed spokesmen.
But as the article goes on to point out actually the last time Chrysler was bailed out they paid back their debt. However it seems ominous that this apologist for the capitalist class is telling us the Big 3 are doomed. Of course as usual they blame workers salaries and production costs for being uncompetitive. However as usual they never let the facts get in the way of their rhetoric. In Canada the wages and benefits paid to Toyota workers who are not unionized are competitive with CAW wages and benefits. Not less but competitive. Yet no one is telling Toyota workers to take a wage cut.
And like the Big 3 Toyota is cutting back on production as well. The crisis of overproduction has hit automakers around the globe, thanks of course to globalization.
We are facing a two fold crisis in capitalism, the fiancial market meltdown and the crisis of overproduction and underconsumption. Nothing new in that it is just the same old same old as Marx pointed out 150 years ago.
SEE
There Is An Alternative To Capitalism
tagsMGuinty, GM, concesssion bargaining, unions, trade union, Marx, Ontario, Corporate Welfare, Canada, cars, automobilie, production, taxes, tax credit, investment, environment, hybrid, self-valorization,, self-management,, workers control,, autoworkers,, KEN LEWENZA,,CAW, Big Three Auto,, libertarian socialism, automobile, Chrysler, Tony Clement, business unions, auto parts, workers, layoffs, plant-closings, workers-control, unions, labour, Canada
Thursday, December 11, 2008
Quebec Slaps Back
Harper was willing to sacrifice Quebec votes for the sake of his base in challenging the opposition coalition by focusing on the Bloc. After all he already had lost credibility and seats in Quebec only a month ago thanks to the Bloc's attack on Harpers Arts and Culture and Law and Order policies. The attack on the BQ as seperatists proping up an illigetimate Dion government was just to tempting not to use to bitch slap them. And Harper is not one to miss an opportunity to slag his opponents. But again at a cost to his support in Quebec.
And as polling shows attacking the Bloc is of limited value in Quebec, since their votes will not go to the Harpocrites but to the NDP.
LYSIANE GAGNON writes;
But many Quebeckers have a totally different view of the Bloc. The Bloc presents itself as the defender of "Quebec's interests" rather than as the champion of sovereignty, and so Quebeckers see it as a regular party that makes them feel secure, a comfort zone in the alien environment of federal politics. It's their "home team," in other words. By the end of the week, the prevailing impression was that not only the Bloc, but Quebec as a whole, had been attacked. And three separate polls showed Quebec was the only province where a majority favoured the coalition.
SEE:
In Quebec Everyone is a Nationalist
Find blog posts, photos, events and more off-site about:
Harper, Canada, Quebec, federalism, Government, PM, PMO, Cabinet, BQ, seperatism, Canada, politics, Conservatives, opposition coalition, economy, government, Conservatives, Harper, recession, NDP, Liberals, BQ, politics, , federal election, minoirity government Jack Layton, , left-wing, unite-the-left, socialism, Quebec, social-democracy, NDP, PQ, BQ,
And as polling shows attacking the Bloc is of limited value in Quebec, since their votes will not go to the Harpocrites but to the NDP.
LYSIANE GAGNON writes;
But many Quebeckers have a totally different view of the Bloc. The Bloc presents itself as the defender of "Quebec's interests" rather than as the champion of sovereignty, and so Quebeckers see it as a regular party that makes them feel secure, a comfort zone in the alien environment of federal politics. It's their "home team," in other words. By the end of the week, the prevailing impression was that not only the Bloc, but Quebec as a whole, had been attacked. And three separate polls showed Quebec was the only province where a majority favoured the coalition.
SEE:
In Quebec Everyone is a Nationalist
Find blog posts, photos, events and more off-site about:
Harper, Canada, Quebec, federalism, Government, PM, PMO, Cabinet, BQ, seperatism, Canada, politics, Conservatives, opposition coalition, economy, government, Conservatives, Harper, recession, NDP, Liberals, BQ, politics, , federal election, minoirity government Jack Layton, , left-wing, unite-the-left, socialism, Quebec, social-democracy, NDP, PQ, BQ,
Bail Out Is Not Job Security
And we got what for this?
And the $6-billion that the Big Three domestic automakers are now seeking from the federal and Ontario governments is on top of what Mike said is $752-million in financial assistance to the industry from the two governments since 2004, including $200-million for Ford, $200-million for GM and $125-million for Toyota.
Layoffs, new plants with shifts shut down, pension plan payments deferred, and let's not forget that auto industry in Canada does not pay for health care.
Committee Chairman Barney Frank (D-MA) pointed out that the only cost difference between operating in the U.S. and Canada “has got to be entirely on health care.”
And there is no asssurances that there will not be further layoffs even with a bail out and further worker concessions. Unlike equity investments past performance does predict future performance when it comes to the auto industry. There is no job security in the auto sector no matter how much money gets thrown at it. And of course we know the only solution to this crisis is socializing the auto sector under workers control. Anything else is a band aid trying to patch a gaping wound.
Canada's three struggling automakers must come clean on plans to cut jobs if they hope to win taxpayer support for the $6 billion in aid they're seeking, Premier Dalton McGuinty says. McGuinty's push for details followed days of criticism from opposition parties worried that an aid deal could be cut with taxpayers knowing nothing about the fate of thousands of auto jobs and how their money will be spent. McGuinty noted the automakers have made public far less information about their plans in Canada compared with their U.S. parent companies, leaving lawmakers here in a difficult position in trying to sell an aid plan to taxpayers already feeling the pinch of the economic downturn themselves.
Overall, GM is seeking $800 million by year's end and $1.6 billion later, Ford wants a "standby" line of credit worth $2 billion and Chrysler $1.6 billion. GM, which is Canada's largest automaker, has signalled it may need another $1 billion if the rapid vehicle sales decline continues.Chrysler has already warned its car assembly plant in Brampton and minivan plant in Windsor may not be able to survive without financial help soon.
General Motors of Canada Ltd. is seeking "painful" cost cuts from the Canadian Auto Workers, as the Canadian units of the Detroit Three ask for financial help from Ottawa and Ontario. "What GM said is, 'We must share in this pain together. And we've got to come up with cost savings, Ken, that may be painful,' " CAW president Ken Lewenza said he has been told. The GM Canada request did not specify what cuts it is seeking, Mr. Lewenza said yesterday, but a union source said the company wants overall hourly labour costs trimmed and workers to give up some of their paid time off. Lewenza's comments came after the United Auto Workers in the U.S. revealed it will revise contracts with GM, Ford and Chrysler to delay billions of dollars in payments to a union run health-care trust. Furthermore, UAW president Ron Gettelfinger said the union would modify a jobs bank in which members on layoff receive up to 95 per cent of their pay. The CAW does not have a similar health-care trust or jobs bank in Canada at the three automakers. But even if CAW members worked for free for an entire year, Chrysler, Ford Motor Co. and General Motors Corp. losses are so massive that the savings from that move would offset just 11 days of losses at the three companies, CAW economist Jim Stanford told the meeting.
SEE:
Chrysler Black Mail
On The Dole
There Is An Alternative To Capitalism
Auto Solution II
We Own GMAuto Solution
tags
MGuinty, GM, concesssion bargaining, unions, trade union, Marx, Ontario, Corporate Welfare, Canada, cars, automobilie, production, taxes, tax credit, investment, environment, hybrid, self-valorization,, self-management,, workers control,, autoworkers,, KEN LEWENZA,,CAW, Big Three Auto,, libertarian socialism, automobile, Chrysler, Tony Clement, business unions, auto parts, workers, layoffs, plant-closings, workers-control, unions, labour, Canada
And the $6-billion that the Big Three domestic automakers are now seeking from the federal and Ontario governments is on top of what Mike said is $752-million in financial assistance to the industry from the two governments since 2004, including $200-million for Ford, $200-million for GM and $125-million for Toyota.
Layoffs, new plants with shifts shut down, pension plan payments deferred, and let's not forget that auto industry in Canada does not pay for health care.
Committee Chairman Barney Frank (D-MA) pointed out that the only cost difference between operating in the U.S. and Canada “has got to be entirely on health care.”
And there is no asssurances that there will not be further layoffs even with a bail out and further worker concessions. Unlike equity investments past performance does predict future performance when it comes to the auto industry. There is no job security in the auto sector no matter how much money gets thrown at it. And of course we know the only solution to this crisis is socializing the auto sector under workers control. Anything else is a band aid trying to patch a gaping wound.
Canada's three struggling automakers must come clean on plans to cut jobs if they hope to win taxpayer support for the $6 billion in aid they're seeking, Premier Dalton McGuinty says. McGuinty's push for details followed days of criticism from opposition parties worried that an aid deal could be cut with taxpayers knowing nothing about the fate of thousands of auto jobs and how their money will be spent. McGuinty noted the automakers have made public far less information about their plans in Canada compared with their U.S. parent companies, leaving lawmakers here in a difficult position in trying to sell an aid plan to taxpayers already feeling the pinch of the economic downturn themselves.
Overall, GM is seeking $800 million by year's end and $1.6 billion later, Ford wants a "standby" line of credit worth $2 billion and Chrysler $1.6 billion. GM, which is Canada's largest automaker, has signalled it may need another $1 billion if the rapid vehicle sales decline continues.Chrysler has already warned its car assembly plant in Brampton and minivan plant in Windsor may not be able to survive without financial help soon.
General Motors of Canada Ltd. is seeking "painful" cost cuts from the Canadian Auto Workers, as the Canadian units of the Detroit Three ask for financial help from Ottawa and Ontario. "What GM said is, 'We must share in this pain together. And we've got to come up with cost savings, Ken, that may be painful,' " CAW president Ken Lewenza said he has been told. The GM Canada request did not specify what cuts it is seeking, Mr. Lewenza said yesterday, but a union source said the company wants overall hourly labour costs trimmed and workers to give up some of their paid time off. Lewenza's comments came after the United Auto Workers in the U.S. revealed it will revise contracts with GM, Ford and Chrysler to delay billions of dollars in payments to a union run health-care trust. Furthermore, UAW president Ron Gettelfinger said the union would modify a jobs bank in which members on layoff receive up to 95 per cent of their pay. The CAW does not have a similar health-care trust or jobs bank in Canada at the three automakers. But even if CAW members worked for free for an entire year, Chrysler, Ford Motor Co. and General Motors Corp. losses are so massive that the savings from that move would offset just 11 days of losses at the three companies, CAW economist Jim Stanford told the meeting.
SEE:
Chrysler Black Mail
On The Dole
There Is An Alternative To Capitalism
Auto Solution II
We Own GMAuto Solution
tags
MGuinty, GM, concesssion bargaining, unions, trade union, Marx, Ontario, Corporate Welfare, Canada, cars, automobilie, production, taxes, tax credit, investment, environment, hybrid, self-valorization,, self-management,, workers control,, autoworkers,, KEN LEWENZA,,CAW, Big Three Auto,, libertarian socialism, automobile, Chrysler, Tony Clement, business unions, auto parts, workers, layoffs, plant-closings, workers-control, unions, labour, Canada
Wednesday, December 10, 2008
Not A Technicality Anymore
So much for the spin that this is only a 'technical' recession. It is now official....
"While Canada's economy evolved largely as expected during the summer and early autumn, it is now entering a recession as a result of the weakness in global economic activity," the bank said in a statement.
It was the first clear admission by the bank that Canada is joining most major economies in sliding into recession, typically defined as two consecutive quarters of contraction, although Governor Mark Carney had hinted at it last month.
Funny but we have been in a global recession since September of last year, when the first British mortgage bank Northern Rock crumbled .
The past year has been one of collective denial by the powers that be.
And now they are suffering a collective flashback.
For example, the last time Canadian interest rates were as low as they are today was in 1958 when Canada was emerging from recession. The economy, valued at about $32-billion at the time, was carried higher by a huge investment boom throughout the mid-1950s. Growth rates reached as high 9% in 1955 and 1956.
Then the boom went bust. The unemployment rate, which was 3.4% in 1956 hit 7.2% in 1961; growth slowed to about 1% as business spending fell off a cliff.
SEE
Neo-Cons Have No New Ideas
Back To The Fifties
Here Come the Seventies
Wall Street Mantra
tags
Canada, Flaherty, politics, Conservatives,consumer spending, tax-credit, Stelmach, economy, government, Conservatives, Harper, recession, Conference Board of Canada, consumer confidence, Economy, asset-backed commercial paper ,, goldhomes, mortgages, housing, bubble, US, economy, oil prices, sub-prime mortgage, Wall Street, crash, recession,Bernanke, Inflation, Staglation, Stock-Market, US, Federal-Reserve-Chairman, Oil, gold, commoditiesSmoot-Hawley, protectionism, tariffs, Herbert Hoover, U.S., U.S. economy, Canada, Great Depression, John McCain, market crash, free trade, Republicans, recession,
"While Canada's economy evolved largely as expected during the summer and early autumn, it is now entering a recession as a result of the weakness in global economic activity," the bank said in a statement.
It was the first clear admission by the bank that Canada is joining most major economies in sliding into recession, typically defined as two consecutive quarters of contraction, although Governor Mark Carney had hinted at it last month.
Funny but we have been in a global recession since September of last year, when the first British mortgage bank Northern Rock crumbled .
The past year has been one of collective denial by the powers that be.
And now they are suffering a collective flashback.
For example, the last time Canadian interest rates were as low as they are today was in 1958 when Canada was emerging from recession. The economy, valued at about $32-billion at the time, was carried higher by a huge investment boom throughout the mid-1950s. Growth rates reached as high 9% in 1955 and 1956.
Then the boom went bust. The unemployment rate, which was 3.4% in 1956 hit 7.2% in 1961; growth slowed to about 1% as business spending fell off a cliff.
SEE
Neo-Cons Have No New Ideas
Back To The Fifties
Here Come the Seventies
Wall Street Mantra
tags
Canada, Flaherty, politics, Conservatives,consumer spending, tax-credit, Stelmach, economy, government, Conservatives, Harper, recession, Conference Board of Canada, consumer confidence, Economy, asset-backed commercial paper ,, goldhomes, mortgages, housing, bubble, US, economy, oil prices, sub-prime mortgage, Wall Street, crash, recession,Bernanke, Inflation, Staglation, Stock-Market, US, Federal-Reserve-Chairman, Oil, gold, commoditiesSmoot-Hawley, protectionism, tariffs, Herbert Hoover, U.S., U.S. economy, Canada, Great Depression, John McCain, market crash, free trade, Republicans, recession,
Chrysler Black Mail
Chrysler is blackmailing Canada.
In its submission to the federal government, Chrysler compared plants in Windsor and Brampton, Ont., with American facilities that could assemble the same models, and noted it had spare capacity in the United States - a comment that some in government saw as a veiled threat to shift production if Canada does not provide emergency assistance.
Meanwhile the Harpocrites offer no new solutions to the auto crisis instead they offer workers the same old same old;
Mr. Clement met with senior officials from the Canadian Auto Workers union, including its president, Ken Lewenza. Mr. Clement has urged the union to be "part of the solution" and has suggested they may need to take a cut in wages and benefits to keep jobs in Canada.
The solution to the auto crisis is not more concessions from workers nor bailing out the Big 3. It is to socialize them under workers control.
SEE
There Is An Alternative To Capitalism
Auto Solution II
We Own GM
Auto Solution
tags
MGuinty, GM, concesssion bargaining, unions, trade union, Marx, Ontario, Corporate Welfare, Canada, cars, automobilie, production, taxes, tax credit, investment, environment, hybrid, self-valorization,, self-management,, workers control,, autoworkers,, KEN LEWENZA,,CAW, Big Three Auto,, libertarian socialism, automobile, Chrysler, Tony Clement, business unions, auto parts, workers, layoffs, plant-closings, workers-control, unions, labour, Canada
In its submission to the federal government, Chrysler compared plants in Windsor and Brampton, Ont., with American facilities that could assemble the same models, and noted it had spare capacity in the United States - a comment that some in government saw as a veiled threat to shift production if Canada does not provide emergency assistance.
Meanwhile the Harpocrites offer no new solutions to the auto crisis instead they offer workers the same old same old;
Mr. Clement met with senior officials from the Canadian Auto Workers union, including its president, Ken Lewenza. Mr. Clement has urged the union to be "part of the solution" and has suggested they may need to take a cut in wages and benefits to keep jobs in Canada.
The solution to the auto crisis is not more concessions from workers nor bailing out the Big 3. It is to socialize them under workers control.
SEE
There Is An Alternative To Capitalism
Auto Solution II
We Own GM
Auto Solution
tags
MGuinty, GM, concesssion bargaining, unions, trade union, Marx, Ontario, Corporate Welfare, Canada, cars, automobilie, production, taxes, tax credit, investment, environment, hybrid, self-valorization,, self-management,, workers control,, autoworkers,, KEN LEWENZA,,CAW, Big Three Auto,, libertarian socialism, automobile, Chrysler, Tony Clement, business unions, auto parts, workers, layoffs, plant-closings, workers-control, unions, labour, Canada
Bank Rip Off
Gosh folks are surprised that Canada's Big Six banks are greedy and won't pass on the interest cut to you and me. Bank slashes key rate to 1958 level
Six Canadian Banks Fail to Match Central Bank Cut (Update6)
Big banks keep slice of deep rate cut
Big 6 lag behind central bank's lead
Bah humbug to banks’ greedy actions on rates
Why I am shocked, shocked I say, shocked that the media and pundits expected these greedy bastards to act like good corporate citizens. After all the last time Carney cut the interest rates, only a month ago, they didn't pass them on. And despite Flaherty and Harper bailing them out to the tune of $75 billion, the banks increased interest rates and service charges on credit cards and have refused to loan money to credit agencies like GMAC and Ford Credit. When you give these guys money with no strings attached they use it to increase their profit and to pay off their bad debts and criminal activities.Of course Mark Carney knows this he used to work for Goldman Sachs. Flaherty knows it too. When the bank and commerce committee met to review credit card and bank card user fees and interest rates they got the cone of silence from the bankers.Truly this is a case of throwing good money after bad.
And while they will claim they are looking after the interests of their shareholders remeber who that is , why you and me of course with our mutual funds, our CPP and other public pension funds who are institutional investors in the banks. In fact we own them.
Time to socialize the banks along with the auto industry under workers control, the only solution to this crisis of capitalism is socialization of capital.
SEE:
Back To The Fifties
UBScandal
Pension Rip Off
Credit Card Rip Off
Canada's Billion Dollar Rip Off
Bank Union
Service Charges
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